The non-contractual early repayment by bank customers of, for example, fixed rate mortgages.
An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet.
It is a prepaid expense.
Example: Venue hire
We book a venue for a function.
And pay 50% of the hire fee in advance.
The 50% paid in advance is an ASSET for us.
We are going to enjoy the use of the venue in future, but it has already been paid for.
So the 50% already paid represents a future economic benefit.